The interest rate is the cost of borrowing the principal loan amount. The APR is the annual cost of a loan including any fees. Thus, the APR is higher than the interest rate.

Discount points are prepaid interest on a mortgage loan. The more points you pay, the lower the interest rate on the loan. Each point is equal to 1% of the loan amount, and points may be tax-deductible.

Whether or not you should pay points depends on how much money you have to put down at closing and how long you plan to stay in the house. If you’re planning to stay in the home for a while, a reduced interest rate makes sense. If you need the lowest possible closing costs, a zero-point option is best for you.

Mortgage Rate Assumptions

Restrictions may apply. Mortgage rates can and do change daily. Rates and APR calculations for 30-year fixed jumbo rates assume a single-family, detached, owner-occupied primary residence with a loan-to-value ratio (LTV) of 75% or less, a minimum FICO score of 740, and a loan amount of $750,000 with a lock term of 45 days.

If your LTV is greater than 80%, PMI will be added to your monthly payment and your APR will increase. Rates, program terms and conditions are subject to change without notice. Subject to credit and underwriter approval; not all applicants will be approved.